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After a bad year that might have made some investors re-consider their investments in the the huge quant fund, DE Shaw made it cheaper for investors by lowering some of its fees.
DE Shaw's 3% management fees were cut to 2.5%, and 30% performance fees were cut to 25%, according to Reuters.
An investor tells us that the fee cuts were in only the fund's main Composite fund, but regardless, the move feels like the firm's admitting that it's has lost a bit of its cred recently. Let's review how they've fallen.
In 2009, DE Shaw's main fund gained 19.9%, but the S&P 500 rose 26.5%.
By mid 2009, its assets had dropped from $39 billion in mid-2008 to $29 billion under management. By the end of 2009, DE Shaw's UK and Dubai units had lost $14.23 million.
Then in 2010, its assets were down again, this time to $21 billion.
And months ago, news got out that the firm laid off 10%.
Read more: http://www.businessinsider.com/de-shaw-losing-luster-2010-2011-2
DE Shaw's 3% management fees were cut to 2.5%, and 30% performance fees were cut to 25%, according to Reuters.
An investor tells us that the fee cuts were in only the fund's main Composite fund, but regardless, the move feels like the firm's admitting that it's has lost a bit of its cred recently. Let's review how they've fallen.
In 2009, DE Shaw's main fund gained 19.9%, but the S&P 500 rose 26.5%.
By mid 2009, its assets had dropped from $39 billion in mid-2008 to $29 billion under management. By the end of 2009, DE Shaw's UK and Dubai units had lost $14.23 million.
Then in 2010, its assets were down again, this time to $21 billion.
And months ago, news got out that the firm laid off 10%.
Read more: http://www.businessinsider.com/de-shaw-losing-luster-2010-2011-2
